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If Ellison doesn't write a check and bail his daughter's company out, it will file for Chapter 11 bankruptcy in either California or Delaware.

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A spokeswoman for Annapurna issued the following statement:

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"The Ellison family is in negotiations to restructure their deals with the banks. They remain in full support of the company and are dedicated to Annapurna's future."

The failure of Annapurna would be a big loss to the indie film world. Ellison is one of the few executives in Hollywood focusing on sophisticated adult fare instead of comic book franchises. Eight years after its launch, the company has evolved from a production-finance entity into a full scale distribution company. Annapurna has backed Zero Dark Thirty, American Hustle, Her, Sausage Party, Moonlight, The Big Short, 12 Years a Slave, If Beale Street Could Talk, and Vice to name just a few of the company's films.

Larry Ellison has a net worth of $70 billion and his own revolving credit situation with two of the banks that are part of Annapurna's problems. Those banks do not want to alienate Larry Ellison. He has reportedly been negotiating to buy his daughter's debt at about 80 cents on the dollar and to put it on his own $1 billion credit line. It is not a great deal for the banks to take less than they are owed and then finance that amount on top of it, even if it is being financed for someone with $70 billion. However, if Annapurna goes into bankruptcy proceedings, the banks would likely only see 50 or 60 cents on the dollar.

After a string of critical and commercial successes, Annapurna went from a production-financer to a full-fledged studio. Right off the bat, in 2017, when the studio secured the credit line things haven't been going well. Films that have been critical hits but barely broke even. The studio hasn't had a breakout hit in years.

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Annapurna's fate will be decided shortly by the bank and the Ellisons. Bankruptcy would be an embarrassment for Megan, which is why most industry people think Larry won't let that happen. Time will tell and we will all know soon.